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JP Morgan Lists Out Safe Sectors For Risk Averse Investors For H2CY2020


Amid the coronavirus crisis, globally sectors that have augured well are names from the IT, home improvement, e-commerce and biotech space. The stocks from these sectors delivered up to 22% return.

For the risk averse lot, the investment bank recommends sticking on these sectors for the rest of the year 2020 i.e. the remaining second half of CY 2020.

JP Morgan Lists Out Safe Sectors For H2CY2020

From an India standpoint, marquee names from TCS and Infosys to Kajaria Ceramics and Hind Sanitaryware to Infoedge and Indiamart to Sun Pharma and Biocon. Further as per the company's report dated June 18, 2020, sectors that have lost in valuation and are down by as much as 30% from their 52-week high prices in such times are from the banking, industrial metals and from the crude oil counters.

IT sectorCounters listed from these sectors are as though with their performance since March lows:

Company Performance since March 2020
HCL 31%
TCS 12%
Wipro 11%
Infosys 10%

The rationale given for the likely safe prospect of these stocks is that as the global tech giants FANG that comprises Facebook, Amazon, Netflix and Google's parent company Alphabet stand to gain due to work from home ritual now, they too would gain. Further there is seen enhanced adoption too of technology in India.

Home improvement space

This is given the global context amid the lockdown and economic fall-out potential home buyers suspended their purchase of a new house and instead went for renovating their homes. In the Indian markets, growth in the sector is pushed by stocks including Somani Ceramics etc.

Company Performance since March 2020
Somani Ceramics 53%
Hindware Sanitary 31%
Kajaria 1%

Biotech companies

Amid the pandemic what led to the resilience or the sector which was unscathed due to the coronavirus crisis has been the pharma generating in fact wealth for investors. The rally has been led by Wockhardt with a stock price rise of 55% during the period.

Company Prformance since March 2020
Wockhardt 55%
Biocon 43%
Sun Pharma 40%
Dr. Reddy's 29%

E-commerce companies:

IndiaMart and InfoEdge have been leading the space with gains during the period to the tune of 37% and 22%, respectively.

Read more about: jp morgan investments coronavirus
Story first published: Wednesday, June 24, 2020, 13:00 [IST]
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